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CCH® PENSION — 08/1/11

IRS semiannual regulatory agenda includes additional guidance on funding and contribution rules

The IRS has released its semiannual regulatory agenda for Spring 2011, which includes pension and benefit regulations that are currently under development or review.

Prerule stage

Among the items in the IRS's prerule rule stage are:

• Guidance relating to the determination of whether a plan is a governmental plan within the meaning of Code Sec. 414(d).
• Guidance on how to calculate the applicable premium under COBRA.

Proposed rule stage

Among the items in the IRS's proposed rule stage are:

• A proposed regulation providing guidance with respect to determining the annual benefit under a defined benefit plan for the purpose of applying the Code Sec. 415 limits in cases where there has been more than one annuity starting date.
• Guidance relating to multiemployer plans that are in either endangered or critical status.
• Reporting and notice requirements regarding participants who separate from service with deferred vested benefits.
• Guidance for "eligible combined plans" under Code Sec. 414(x).
• Additional guidance regarding the determination of plan assets and benefit liabilities for purposes of the funding requirements that apply to single-employer defined benefit plans, the use of certain funding balances maintained for those plans, and the benefit restrictions for certain underfunded defined benefit pension plans.

Final rule stage

Among the items in the IRS's final rule stage are:

• Definition of "highly compensated employee" under Code Sec. 414(q).
• Regulations providing guidance on the application of the accrual rules for defined benefit plans in cases where plan benefits are determined on the basis of the greater of two or more separate formulas.
• Guidance on the determination of minimum required contributions for purposes of the funding requirements that apply to single-employer defined benefit pension plans.
• Additional guidance regarding the rules for hybrid plans.
• Regulations providing relief from the 3% mandatory nonelective contribution requirement in safe harbor 401(k) plans.
• Cafeteria plan rules.

Source: The IRS Agenda for Spring 2011 is available at www.Reginfo.gov.

For more information, visit http://www.wolterskluwerlb.com/rbcs.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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